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Rising Used Condominium Prices in Tokyo and Major Japanese Metropolitan Areas: A Closer Look at the Trends

 

Rising Used Condominium Prices in Tokyo and Major Japanese Metropolitan Areas

Tokyo Kantei Press Released on March 23, 2023

 

Major Cities in the Three Major Metropolitan Areas: Monthly Trends in Used Condominium Prices (70 sqm)

In February, used condominium prices in the Tokyo metropolitan area increased

by 0.4% compared to the previous month, reaching 48.66 million yen,

marking the third consecutive month of increase.

In central Tokyo, prices once again surpassed the 100 million yen mark.

The average prices in the Kinki and Chubu regions also continued to rise modestly,

with no significant downward movement seen in the market.

In February 2023, used condominium prices in the Tokyo metropolitan area

rose for the third consecutive month, with a slight increase of 0.4% compared to the previous month,

reaching 48.66 million yen.

 

When looking at the data by prefecture, Tokyo saw an increase of 0.7% to 64.41 million yen,

surpassing the record high set in December of the previous year.

 

In Kanagawa Prefecture (+0.4%, 36.68 million yen), prices continued to rise compared

to the previous month, while in Chiba Prefecture (+1.7%, 28.29 million yen),

prices have been on an upward trend since April of the previous year.

 

On the other hand, prices in Saitama Prefecture decreased slightly by 0.4% to 30.49 million yen,

marking the first decline in six months.

 

The average price in the Kinki region increased for the first time in two months,

with a slight increase of 0.2% to 29.14 million yen, due to the strength of the Osaka area.

In Osaka Prefecture, the price showed a similar movement with a 0.2% increase to 31.28 million yen,

but it did not surpass the level reached in December of the previous year.

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Japanese Condominium Prices For Investment Reach Record High in Q1 2023 (by Rakumachi)

 

Rakumachi, a real estate website in Japan, conducted market research for the first quarter of 2023

and found that the prices of all types of investment properties in Japan have increased.

(Not property for living)

 

The average price of one-room apartments increased to 74.95 million yen,

the average price of one-building apartments rose to 277.9 million yen,

and the average price of condominiums rose to 18.81 million yen.

One-room apartments had a yield of 8.98%(gross yield), while one-building apartments had a yield of 7.52%(gross yield),

and condominiums had a yield of 6.87% (gross yield).

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How is the market going?: TOKYO KANTEI Monthly report June 2019 (condominium market)

Fine-looking market?

TOKYO KANTEI Monthly report June 2019

Remarks:

Source: Tokyo Kantei (June 2019) The market in central districts in Tokyo is starting to show the downtrend.

Red : Market movement (sellers listing price)

 

Tokyo Kantei (real estate think tank) just announced the latest report on the price movement of the second-hand condominium market.

 

The price of second-hand apartment buildings in major metropolitan areas continued to fall at ¥ 45.59 million in the 23 wards of Tokyo, down 1.5% from the previous month.

 

It is thought that this is due to the case share reduction in the central Tokyo area and weakness in the surrounding area.

In addition, Saitama City (-1.7%, 27.74 million yen) and Chiba City (-2.8%, 18.32 million yen) are also negative, and the rate of decline in Chiba City, where the number of cases from old buildings increased, was compared It became huge.

On the other hand, Yokohama City has maintained its upward trend, with + 0.9% at 31.12 million yen.

The average prices of major cities in the Kinki region (Osaka area) rose for three months in a row to 32.84 million yen, which is + 1.1% from

the previous month.

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HARUMI FLAG project in Tokyo : Biggest condominium development in the history : Will it fail or succeed ?

When the key project takes a tumble ?

The Tokyo Olympics and Paralympics will be held in 2020 summer.

The athlete’s village will be actually renovated and sold as condominiums, rental apartments, and commercial facilities after the Olympics approximately four years after the games.

The development project after the Olympics was named “HARUMI FLAG”.

It is a massive project.

In light of very defensive movement of the new condos in last several months,

many industry figures are bracing for the outcome of the sales.  

Total of 4145 condos units will be for sale and 1487 units of rental property (rental units) will be entering the rental market.

It is the biggest condominium development project by far in the industry history.

By the way, the consortium already announced that two high rise condo buildings will be also built in the site but the details are not

released yet. (the above 4145 units do not include two high rises) 

The development area (Harumi Flag) will be accommodating about 12,000 residents.

The development is a very rare joint project by the consortium of Mitsui Fudosan Residential, Mitsubishi Jisho Residence, Nomura Real Estate, Sumitomo Real Estate,

and other 10 major developers will be engaged. 

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Controversial argument: Where are the places you don’t want to live in Tokyo ?

 

(Machida)

Moving into a new place can be an exciting yet expensive decision.

It is essential that you view the property in person as the photos may (or may not) do the property justice.

You may be able to identify issues that are not present in the photos, which may not be up to date.

Visiting the property gives you a feel for the location and the neighbourhood.

In any cities, there are some neighbourhoods where you don’t walk in the middle of night alone.

In fact, in Tokyo there is almost none.

Maybe you may feel weird if you walk on the street early in the morning in Shinjuku Kabukicho but you won’t feel

extreme insecurity.

I recently read a book written by a guy called ‘Masayoshi Osaka’. The book is called ‘Where are the places you don’t

want to live in greater Tokyo ?’  It is highly controversial and full of prejudice such as race, income and business.

He is a reasonably well-known blogger, originally from Osaka.

He is running a media company “Tokyo Deep Guide” , which is the extreme biased media.

The media shines light not on the positive side of the cities/towns in Tokyo but on the negative side.

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Japan market update. How are big players betting ? : Is it in the state of bubble ?

 

JLL-Japan (JLL is an American professional services and investment management company specializing in real estate) recently held the conference in Tokyo with 400 participants from 250 companies.

JLL reported very bullish news about Tokyo market as follows: 

Tokyo overtook London as the world’s busiest real estate market in the first quarter of 2018, with mega-deals and an unusually positive economic outlook driving demand.

Investment volumes in the Japanese capital more than doubled to US$9.1 billion in the three months to March (2017: US$4.3 billion), just beating New York (US$9 billion) and way ahead of third-placed London (US$5.9 billion).

Global deal volumes rose 15 percent to US$165 billion, making the start of 2018 the biggest quarter for commercial real estate deals since 2007. Asia Pacific transactions rose 34 percent to US$40 billion.”

Tokyo will continue to see the many office construction sites till 2020 and it would make the rental growth slow but the rents have been steady and are still rising.

According to a report by the prominent Japanese real estate consulting firm ‘Sanki shoji’, the vacancy rate of offices in upscale locations in Tokyo as of September 2018 stands at only 2.33 percent (down 0.12 percent from the previous month) and the rents have been steadily rising in last twelve months.
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The best buy places to own a new condo unit in Japan

(Kashiwa station, Chiba)

Do you want to know the best buy places to own a condo unit in Japan ?

Toyokeizai, one of the renowned business magazines in Japan
recently featured the unique real estate (condo unit for home) information in Japan.

The magazine picked up some best buy railways stations in greater Tokyo, Osaka and Nagoya to own for your home.

The ranking is based on unique method of PER (Price Earning Ratio).
This particular PER is used to calculate the length (years) to pay back the property price
(new 3 bed room unit with 70 m2) if you rent out.

For example, Read more

Is it end of booming real estate market in Japan ? : Kenbiya latest quarterly report June 2018


(Nomizo -no-taki(Nomizo fall), Chiba pref)
Is a tidal wave finished in Japan ? It is about time to to buy a property ?
Japan’s one of the major online web sites for the investment properties ‘Kenbiya’ recently announced the latest  market trend on the properties that are registered on the site in Japan.
It is not an official report by the public sectors but the research shows the quick snap shot of the market trend.The research results cover the period between April 2018 and June 2018
on properties in Japan for each market segment.
Let’s take a closer look at the result.
Overview on all Japan
Condo unit
The gross yield of registered properties is almost unchanged at 7.69% ( minus 0.02 points compared with the previous term).
The average price fell slightly to 14.24 million yen (-3.85% from the previous term).
Residential apartment building
The gross yield of registered properties rose slightly to 8.91% ( plus 0.13 points). The average price is 67.4 million yen ( minus 2.06% from the previous term).
The average price for the apartment buildings declined for the first time since 2013.
Residential condo building
Registered yield slightly increased to 8.06% (plus 0.09 points).
The average price slightly went up to 16,329,000 yen (plus 0.66%)

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